MW Netflix saves 'Sesame Street' from foreclosure with streaming deal, but troubles remain

By Lukas I. Alpert

'Sesame Street' faced financial difficulty after HBO chose to not extend its deal, but the storied children's show has also seen declining audiences and questions of relevancy after 56 years on TV

It's a sunny day on "Sesame Street" with the announcement of a streaming deal with Netflix Inc., but clouds remain as the long-running children's program faces declining audiences and questions about its relevancy after 56 years on television.

The arrangement with Netflix $(NFLX)$ comes after Warner Bros. Discovery Inc. (WBD) announced late last year that it would not renew the deal it signed in 2016 to air "Sesame Street" on HBO, saying the decision to move away from children's programming was part of a refocusing of its priorities.

The new multiyear deal with Netflix is a win for the storied children's show, which has been a mainstay of television since 1969. Under the deal, new and older episodes will be available globally on the streaming service, and new episodes of the program will also air on PBS the same day.

Netflix's stock slipped 0.3% in midday trading on Monday after closing Friday at a record $1,191.53.

"This unique public-private partnership ensures children in communities across the U.S. continue to have free access on PBS KIDS to the 'Sesame Street' they love," said Sherrie Westin, chief executive of Sesame Workshop, the nonprofit behind the program. "This combined support advances our mission and ensures we can help all children - everywhere - grow smarter, stronger, and kinder."

The loss of the HBO deal had put the future of "Sesame Street" in doubt, as the program had been largely financially sustained by the $35 million it received annually from Warner Bros. Discovery. Terms of the deal with Netflix were not disclosed.

But even with the financial lifeline, "Sesame Street" still faces challenges. Ratings for the program have been in decline for years. In 2023, the show ranked 14th overall among children's programs on streaming platforms, the Washington Post reported.

In 2022, "Sesame Street" found in an internal review that its appeal among kids between the ages of 3 and 5 had declined significantly.

"Sesame's engagement has been waning, and if the brand continues without doing anything, it will not survive," the review noted, according to the Post.

Part of the problem, some analysts felt, was that the show had created far too many characters, making it hard for children to connect emotionally with any of them.

Last year, "Sesame Street" announced that it was planning to reduce the presence of some of its most famous characters, like Bert and Ernie, to address this issue.

For the show's 56th season, which will be the first to air on Netflix, "Sesame Street" said it plans to move away from its traditional magazine-style program, in which episodes are made up of several short bits, in favor of a more narrative storytelling style.

-Lukas I. Alpert

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May 19, 2025 12:22 ET (16:22 GMT)

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